You are trying to pick the least expensive car for your new delivery service. you have two choices: the scion xa, which will cost $13,000 to purchase and which will have ocf of −$1,200 annually throughout the vehicle's expected life of three years as a delivery vehicle; and the toyota prius, which will cost $23,000 to purchase and which will have ocf of −$550 annually throughout that vehicle's expected five-year life. both cars will be worthless at the end of their life. if you intend to replace whichever type of car you choose with the same thing when its life runs out, again and again out into the foreseeable future, and if your business has a cost of capital of 16 percent, what is the difference in the eac of the two cars?

a. $317.88
b. $310.38
c. $413.25
d. $361.13

Because of the violent nature of the sport, professional american football players are at risk of suffering concussions (or brain injuries) during the violent collisions that occur between players during the game. violent collisions involving hits to the head are particularly risky. suppose the commissioner of the national football league (nfl) institutes a rule requiring players to wear a new, lighter helmet that is designed to reduce head trauma during collisions between players on the field. while the new helmets the probability of a concussion resulting from each individual collision, at the same time the new helmets could also give football players an incentive to play more , which could potentially the amount of violent collisions and thus the number of concussions suffered by nfl players, all else equal.